Open Text Corporation (NASDAQ:OTEX) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Open Text has a consensus “Hold” rating: Ten of 14 analysts recommend holding the stock, while four recommend buying it. The average 12-month price target is $33.67, though several brokerages recently lowered their targets.
• The company beat quarterly expectations, reporting $1.01 in adjusted EPS versus a $0.94 consensus and $1.28 billion in revenue, up 2.2% year over year.
• Open Text declared a quarterly dividend of $0.275, equivalent to $1.10 annually and a 4.3% yield; institutional investors and hedge funds own 70.37% of its shares.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC has earned a consensus recommendation of "Hold" from the fourteen analysts that are presently covering the company, MarketBeat.com reports. Ten equities research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $33.6667.

A number of equities research analysts have recently issued reports on OTEX shares. Royal Bank Of Canada dropped their target price on shares of Open Text from $30.00 to $27.00 and set a "sector perform" rating on the stock in a report on Friday, May 8th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Open Text in a report on Wednesday, June 24th. Scotiabank lowered their price target on Open Text from $50.00 to $40.00 and set a "sector outperform" rating on the stock in a research report on Friday, May 8th. Raymond James Financial dropped their price objective on Open Text from $42.00 to $35.00 and set an "outperform" rating on the stock in a research note on Friday, May 8th. Finally, Citigroup cut their price objective on Open Text from $26.00 to $25.00 and set a "neutral" rating for the company in a research report on Friday, May 8th.

Institutional Investors Weigh In On Open Text

Several hedge funds have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC acquired a new position in shares of Open Text in the third quarter valued at $33,000. WealthCollab LLC raised its position in shares of Open Text by 39.5% in the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after purchasing an additional 464 shares during the period. Caitong International Asset Management Co. Ltd lifted its stake in shares of Open Text by 5,096.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock worth $52,000 after buying an additional 1,580 shares during the last quarter. Osaic Holdings Inc. lifted its stake in shares of Open Text by 108.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock worth $52,000 after buying an additional 937 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock worth $59,000 after buying an additional 570 shares during the period. Institutional investors and hedge funds own 70.37% of the company's stock.

Open Text Price Performance

NASDAQ:OTEX opened at $25.88 on Thursday. The stock has a market capitalization of $6.27 billion, a PE ratio of 12.62 and a beta of 1.04. Open Text has a 1-year low of $19.77 and a 1-year high of $39.90. The firm has a fifty day simple moving average of $22.74 and a 200 day simple moving average of $23.87. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings results on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.94 by $0.07. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter last year, the company posted $0.82 earnings per share. The company's revenue for the quarter was up 2.2% compared to the same quarter last year. On average, research analysts expect that Open Text will post 4.05 EPS for the current fiscal year.

Open Text Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date was Friday, June 5th. Open Text's dividend payout ratio is 53.66%.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

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